Figures collected by PlayPennsylvania.com show that the legalization of sports betting and online gambling has already generated more than $395.8 million for the state.
Pennsylvania state taxes for gambling In addition to federal taxes payable to the IRS, Pennsylvania levies a 3.07% tax on gambling income. You should report your Pennsylvania taxable winnings on PA-40 Schedule T (PDF). The Pennsylvania budget is counting on receiving only $30 million in revenue this year from sports-gaming licenses, according to the Independent Fiscal Office. There is no doubt that Pennsylvania's 36-percent sports gaming tax (the state portion is 34 percent and 2 percent goes to host communities) is very high compared to other states.
That money hasn't come from extra gaming taxes — at least not yet.
So far, only three casinos have launched sports betting and none have launched online gaming.
PA casinos licensing and other revenues
That money hasn't come from extra gaming taxes — at least not yet.
So far, only three casinos have launched sports betting and none have launched online gaming.
PA casinos licensing and other revenues
It is the total of all the upfront fees paid by licensed casinos under the new laws. The casinos have paid fees for:
- Permission to operate new mini-casinos — up to $50 million for a single license, $128 million in total
- Licensing fees for online gaming — $4 million per license or $10 million for a package of three, $94 million in total
- Licensing fees for live and online Pennsylvania sports betting— at $10 million per license, six licenses granted, $60 million total
- Casino licensing — a total of $78 million
Pennsylvania does not tax nonresident individuals, estates or trusts on gambling and lottery winnings by reason of a wager placed outside this Commonwealth, the conduct of a game of chance or other gambling activity is located outside this Commonwealth or the redemption of a lottery prize from a lottery conducted outside this Commonwealth. Mar 31, 2020 In February, Pennsylvania received $67.9 million in taxes from $199.7 million in revenue the slots generated at the 12 land-based casinos. Local governments shared an additional $3.9 million. Nov 19, 2020 The retail sportsbooks and mobile sports betting applications reported $36.8 million in gross revenues, and the state received $12.5 million in tax funding as a result, by far a record for state.
On top of these license fees, the PA online lottery has offered new games and daily fantasy sports (DFS) has generated new revenues:
- $23 million in revenue from online lotto games ($19.6 million), keno ($3.6 million), and virtual sports ($87,000) to the end of October
- $1.4 million from DFS
Dolly parton casino rama atlantic city. Jessica Welman, an analyst for PlayPennsylvania.com, commented:
'If the point of the expansion was to fill short-term gaps in the state's budget, then the expansion would have to be considered a success so far.
Above all, she cautioned that this early revenue boost might not indicate long-term success:
'We believe that the gambling expansion will eventually prove to be a winner for the state's budget, but the long-term picture is less certain. More casinos and sportsbooks must open before we get a clear picture of whether Pennsylvania's relatively steep tax rates and license fees will produce the desired outcome.'
Early success, but cautious optimism for the future
Pennsylvania passed its new gaming laws at the end of October 2017. In May 2018, the USSupreme Courtoverturned the Professional and Amateur Sports Protection Actto allow state-regulated sports betting.
Pennsylvania immediately jumped in to add sports betting to its legal gambling regime. 400 slot bonus.
Most noteworthy, the two things Pennsylvania needs to get a significant long-term tax revenue stream are:
- Existing bettors to switch from black market offshore sites
- New customers to start wagering at casinos and online sites
Therefore, the new gambling laws must create successful casino business that has the revenues to pay a lot of taxes.
High tax rates are the biggest risk to this outcome. Pennsylvania charges 36 percent taxes on sports betting and 54 percent on online slots.
Such high rates might make the legal market non-competitive with the black market.
New Jersey is making better than expected revenues from its newly legalized sports betting market, but it has the benefit of much lower taxes.
New Jersey operators pay 9.75 percent on live sports betting revenues and 13 percent for online revenues.
Even more, at 17.5 percent, New Jersey online slots taxes are less than a third of Pennsylvania's rates.
It is an open question as to whether Pennsylvania can match New Jersey's success.
Dustin Gouker, the lead sports betting analyst for PlayPennsylvania, takes a positive view:
'The addition of retail sports betting should help buoy a slowing Pennsylvania casino industry. If New Jersey is any indication, though, the more significant revenue generator will be online sports betting. A successful rollout there should generate millions of dollars in tax revenue for the state.'
Gambling Tax Laws
PlayPennsylvania produces detailed gaming revenue figures
PlayPennsylvania prepares revenue figures from a combination of official statistics and estimates based on iLottery, keno and virtual sports sales numbers.
Gambling Tax Rates
The detailed numbers are available here.
